The B.C. Securities Commission says it has reached a settlement with North Vancouver resident Tajkarim Mohamed for using two Hong Kong companies to facilitate close to $12 million worth of unregistered stock transactions.
Mohamed has agreed to pay a $125,000 fine, agreed to a four-year ban from market participation. He also returned $647,820 in shares he received as compensation for facilitating 66 distributions of securities through Hong Kong companies Lacie Holdings Limited, of which he was the sole director, and CE Star Holdings Limited, of which he was the CEO.
The commission said Mohamed settled with the BCSC before a hearing was scheduled to take place. Allegations against another individual and several entities in that case are pending.
Mohamed’s associate Aly Ismail, of Revelstoke, was also implicated in the alleged illegal arrangements.
It has been alleged Ismail used Alberta-registered NH Transcendental Business Solutions Inc. and the federally-registered Green Stream Botanicals Corp. in his business partnership with Mohamed.
The commission previously said that Mohamed had received about $758,000 for his trades and related activity, while Ismail received about $283,000 for his activity in 2018.
Mohamed's associate faces hearing delay
On Thursday, the commission said a hearing panel had issued temporary trading orders against Ismail and his companies “because the hearing against them for allegations of unregistered trading has been adjourned.”
Ismail is temporarily restricted from participating in B.C.’s investment market, except as an investor. Ismail’s companies are likewise temporarily prohibited from trading its shares or engaging in any promotional activity.
The panel granted an adjournment of the hearing, which was set to begin on October 29, 2024, due to Ismail’s “medical issues.”
By referring prospective investors, facilitating investments and acting as intermediaries, the commission alleges Ismail engaged in “acts in furtherance of securities trading despite not being registered to do so under B.C.’s Securities Act.”
